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tv   Whatd You Miss  Bloomberg  September 13, 2017 3:30pm-5:00pm EDT

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will have dinner at the white house with chuck schumer and nancy pelosi -- he will have dinner at the white house with chuck schumer and nancy pelosi. president started up the conversation. there'sor any of the 1% centers are- one per going to get tax cuts. this is about stimulating the economy and being globally competitive. clinton says former fbi director james comey was the difference between winning and losing the 2016 presidential election. congress about new information found in the investigation of secretary clinton's use of a private email server. clinton told nbc that drove voters away. to top house democrats alledge
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michael flynn violated federal law by omitting a business trip to the middle east on security clearance forms. they demand he provide a full list of foreign contacts. the accusations are linked to a plan they say was financed jointly by russia and saudi arabia. michael flynn resigned in february after reports he misled its senior white house officials about contacts with russia. the hits keep on coming. the cleveland indians winning streak is at 21. the indians defeated the detroit tigers 5-3 in cleveland and set a new american greek letter -- american league record for consecutive victories. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.
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i am mark crumpton. this is bloomberg. ♪ julia: live from bloomberg's world headquarters in new york. we are seven minutes from the close of trading. stocks take a breather. joe: the question is what'd you miss?? release theix will tax framework the week of september 25. julie: bank jobs might be disappearing in the next few years. a former citigroup chief explains why he is investing. david gura sits down with the former secretary of homeland
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security for his thoughts on the federal russia investigation. julia: what'd you miss? the long-awaited details today on tax reform. a process spearheaded i a group known as the big six, a group of lawmakers and administration officials led by congressman kevin brady. brady laid outn is the ongoing process for tax reform and tax cuts for middle-class families this year. it starts with the outline that will be released the 25th and then the tax-writing committees are going to take feedback and input and produce bills in the weeks ahead. kapur joins us from capitol hill. that was the house speaker. i want to quote donald trump. the rich will not be gaining a all with this plan, the rich will be pretty much where they
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are. if they have to go higher, they will go higher. are the house speaker in big six on board? >> there is a disconnect between the rhetoric and the proposal he is actually put out. cuts for the rate highest earners. one study found 40% of the rate cuts would go to the top 1% of earners. it is not clear how exactly that would work. he would have to change what he has talked about, which is cutting rates across the board, including for the top. it is not clear there is enough to balance out the amount they would gain. true, would they need democrats? i was glad you brought up the gap between the rhetoric and the policy.
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i have a question i've been meaning to ask. this is the right context. steve bannon has been doing these interviews, complaining that the congressional gop hasn't been on board the president's economic populist agenda. where is that economic populist agenda --t goo agenda? >> the republican leadership in congress has been at odds with the president. they are more favorable to free trade, which president trump campaign pretty strongly against. that is more what he is talking about. proposed an had significant tax increase for the highest earners. that is a populist thing you can get people on board with. republican leaders in congress
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are not willing to give that up. the president is not giving that up either. julie: we talked to mick mulvaney, who heads up the office of management and budget. he talked about presidential priorities as well. me on myesident called way over to this interview to need to 15%at we corporate rate to drive the economic investment, the capital investment to get companies kobach the united states overseas and to get overseas companies to move here for the first time. get will drive growth and us that sustained a 3% economic growth we so desperately need. julie: this corporate tax rate seems to be an important centerpiece of the tax reform plan. the president has been trying to reach across the aisle and having dinner with chuck and nancy.
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about that part of the tax reform agenda? they have said the package has not added to the deficit. and it should go through the regular order, not reconciliation. the republicans have not adhered to those demands. the third demand is tax cuts for the highest earners. the president is meeting with democrats. why would republicans not want democratic support? but they are not shaping their plans for the purpose of winning democrats. it is more, let us pressure them and try to get them on board. if not, we will do it on her own. these guyse of would be helpful, particularly if they want to do reconciliation with 51 votes. he has been targeting some of the more centrist democrats. >> the three democrats went to
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the white house yesterday were democrats who were up for we election in 2018 in states that president trump one -- won. these are democrats who want work with trump on some things. --ia: sha julie: sahil kapur. coming up, indy wiseman -- and us.semen will join where he is looking to invest in today's climate. from new york, this is bloomberg. ♪
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julie: what'd you miss?
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>>? indie wiseman focuses on the information and technology sectors. he is at the cornell tech conference talking about new york city as a technology hub. it has been in the shadow of silicon valley to some extent. andy, thank you for joining us. when you look at new york and , they do have some similarities, certainly in the terms of costs. define that new york is competing with other locations around the country? part of the question is how you define competition. each region can be unique. new york is clearly unique. the competition between
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new york and in silicon valley to be a bit of a nothing burger. of the big stories in the economy right now is the extraordinary dominance and influence. of major players in tech like amazon, apple, alphabet. and the difficulties companies are having in competing with them. we have seen with ring on the vine -- withering on the vine. how does that define early-stage companies? andy: this is one of the things different about the environment right now. of whom you mentioned are much stronger than they have been. more profitable, with more cash. they are now schooled in the art of disruption, which used to be one of the novel things about the starts we invested. in.tart ups we invested
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you look for companies that one compete with those big companies. it is one of the reasons why block chain is so interesting, tois inverted in a way engage competitive dynamics. we have been telling our investors this is a dynamic that could affect venture returns in general. joe: these companies do all kind of things, from transportation to retail to funding entertainment. is block chain and cryptos the one area you don't see them doubling in -- dabbling in? andy: it is very hard for them. block chain, all those companies are data, they collect data and use data to monetize and create business. block chain is an open database. there is no ownership of the data. anyone can see it.
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if there is a different competitive dynamic, it is the idea that companies that make their business around data can't compete against a block chain at ecosystem. this is something that has a lot of investors excited. that competitive dynamic is very different. increasing challenges involve looking at a prospect for investment. the opportunity in terms of those that don't in any way compete with the increasing size of some of the big tech players, it as capital doesn't cut a venture capitalist. you have to offer something different. andy: that is one of the big changes in my experience. capital is no longer scarce. capital is the same color as
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yours. we have to differentiate around different things. differentiate around very small fines. we only have one office. you have to have different access and capital is probably the least relevant one of any access. it is an incredible time to be an entrepreneur. it is definitely a harder time for vcds. joe: i'm curious about that, but not asking for sympathy. [laughter] will take it if you give me a little. [laughter] i am curious about the political situation. one of the other interesting things is that tech, for the first time, has supplanted the role that finance have. an industry that was really popular. pundits and politicians
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talking about antitrust, companies squelching free speech. all reasons to be politically angry at tech companies. how does this affect the tech landscape? andy: it is interesting. i think these tech companies touch more parts of our lives as they grow and become more powerful. they affect people in a way that feels more miserable -- feels more visceral. anticompetitive? that question is much more difficult to answer. but because they tie just in many ways, we feel the competitive -- because they touc ways, than anger may be expressed in many ways. we feel that competitive situation.
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i don't know this anger is bubbling up in the things we use every day. julie: if we do see a result of this public anger, increased regulation or antitrust action, how do you feel about that as a venture capitalist? do think the interests of these tech giants we're talking about and folks were in your position the verge -- who are in your position diverge? andy: if you believe that anything that enables our companies to compete better is a good thing, then yes. these companies are into competitive in ways we think they are. how would we do that? thatmportant thing is given these companies are data companies and individuals were giving them our data, maybe individuals have a different right to data than we ever had before. maybe we should have different rights to take our data with us
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and understand our data and have computers access our data. to call it, the right to be represented by a b ot, or api. the solutions are more market-based than splitting a company up. julia: you think regulation is a long way off, because it is tough to achieve. yes, butould've said the newspapers seem to show groundswell for it. can we count on the regulators to regulate these companies in a proper way, because they look so different? is google a search engine or car company, is amazon a bookseller or provider of cloud services? because they are different, what would you do? you can make a really bad mistake for consumers. it requires something different.
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one exercise is to think about consumers, that consumers can take data and use them in other places. is that a solution? julia: great to chat. thank you. andy weissman. it is time for the bloomberg businessflash. boeing will increase the number of dream lines starting in 2019. production will grow to 14 per month. the announcement follows a deal to sell planes to airlines. boeing agreed to a $600 million contract to design two new air force one planes. a former u.s. trader has been charged with manipulating metal prices. he is part of the justice department's probe looking into manipulating currencies. that is your bloomberg
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businessflash. julie: it is time for the stock of the hour. gas shares are up for the fifth time in six sessions. the turnaround plan is convincing wall street. shares are getting a boost from takeover rumors elsewhere in retail. more than 2%, but they have had this enormous run in september. oliver: gapping up. >> nice. >> i made that up on the spots. -- up on the spot. this company has been through a lot, wrapped up with all the retail speculation on how the industry will fare with online competition, but they have had their own specific problems. the street is feeling good about the way the corporate board is outlining the strategy for growth. this means finding the highest margins, the highest selling
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parts of the business, and making those the focus. let us stop into the terminal. the big topic is shifting their efforts towards old navy. i am in the financial analysis page. here are the list of stores. old navy, cap, banana republic -- gap, banana republic. this is what we are looking at in terms of the breakdown of actual percentage of revenue. old navy, 44%. not only does it take up most of the sales, but it has the best margins. they want to find that customer on one end of the spectrum or the other. they try to find people in the middle, and there weren't a lot of people in the middle for eight years or so. you were buying expensive banana republic, or buying gap. wall street feels good about that. julie: it is interesting, given the nordstrom news.
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has seen obstacles to acquisition in the past. thank you. you can check out tv . click on our charts and graphics, interact with us directly. it is our favorite way to consume bloomberg tv. julia: and if it wasn't, it is now. julie: we will be right back, with the closing bell in a few moments. there are was, just talking. ♪
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>> what'd you miss? get a job in the hospitality industry, it might be a good time. within restaurants and hotels, we are seeing job openings at a
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record increase. here is the rate of job openings. 5% increase in these type of openings in hotels, food services, the leisure industries. like they are having trouble finding folks in this particular industry. we have been seeing steady wage growth there as well. just -- if this doesn't work out, we know where to go. england hasank of an inflation problem. they are unique in that sense. take a look at this chart. yellow line shows euro-sterlin the resurgence we have seen since august. in banksge inflation get a little bit of a reprieve, not as strong.
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show you the risk reversal, for the premium you pay for the euro. the three months, the blue line, coming off. if you look at the euro-sterling one year, it has bring pretty -- it has been pretty static. we are seeing lower expectation of a continued rally near a sterling. but recognition that brexit is coming. joe: inflation data out of the u.s.. here is hopeful news. chinesee line is producer prices, which historically has a relationship to global inflation. up 6.3%. this is the white line, diving. core pte not doing well.
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maybe there is another big inflationary impulse coming, certainly the federal reserve hoping to see higher numbers. julie: the market closes, next. , maybe a averages record close. this is bloomberg. ♪
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♪ >> u.s. stocks inching higher
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into the close, and it was a record for all three indexes. we are seeing more inflation reading for the central bank policy. i am julia chatterley. joe: scarlet fu is on assignment. you are tuning in live on twitter. we want to welcome you. with thet's begin market minutes. all three averages are closing at records, they were records yesterday, so any gain would be another record. we are seeing little gains are the major averages. we saw energy stocks rally on the day as well as oil. utility shares are still weak, but in terms of the stocks we are watching here, we have been watching nordstrom.
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nordstrom climbing on a report that leonard green and partners may help fund a buyout, the family that controls that company was seeking to take it private. we are watching equifax, those have plunged 30% since it came becausead been exposed of security vulnerability. 143 million people have, up -- hacked. senators want them to get to the bottom of whether the violations were done by managers when they sold stock after they found out they were hacked. this company will pay $4 billion to buy fidelity care to enter new york's mass-market. it is associated with the catholic church in new york. swatch swiss shares of work and reading up -- were trading up.
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-- trading lower because of apple stocks. other stocks we are watching, looks like president trump is blocking a band for lattice semiconductor from china. it is a china back to bid that would try to get the government behind this, but it does not look like it was successful in doing so. we are seeing bouncing around in the after-hours, but not much reaction as of yet to this headline coming out. betty: and there was already -- raisedalready a red flag in the united states. they have been concerned with mitigation efforts. it hit donald trumps desk and he said no way, jose. the fourth time in a quarter century a president has blocked foreign takeover on national security grounds.
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let's return to market minutes and look at the government bond market. not baton of victory of the -- a ton of activity, but we are -- withhe yield up for the risk on sentiment we have seen through the first three days of the week, higher rates, now the 10 year 2.19%. julia: you can look at this currency market as well. it is a show of what is going on . euro-dollar at a two-week high, the dollar-yen, sterling and course. 2.9% inflation. could get something from the bank of england, and the wages were to the top side. a look at the dollar thing here -- the credit suisse target was --ught up to 1.2 to two 1.22.
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there was a drop in full-time employment, but the overall picture was mixed. there is a drop in the unemployment rate. want to point out what is going dollar-rand because we are seeing the south african -- weakened by 1% by 1%. softness across the board, combination of technical moves, seeking technical profit, and the headlines from the south african national bank causing wobbles. oil,and let's start with which had a nice gain of 2%. the international energy it -- is saying stronger is demand, so maybe that story giving a better list to west texas intermediate, but still below $50 a barrel, gold selling off a little bit
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like it often does on risk on days. in the industrial metals pulling back, nickel is down 5.3% on the day. for more on what is driving stocks higher and what to expect from the bank of england, this is the bloomberg markets live editor, and en masse. -- dan moss. but it wasall gain, the third day in a row with gains, second day that the u.s. stocks have simultaneously closed at major records. sentiment isgh improving to some extent. >> we had this big relief rally with hurricane damaged not as bad as expected and when north korea did not shock anyone over the weekend. what i have been harping about are the bollinger bands. joe: we will deal with some
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bollinger bands. what are they? that line in the middle is a 20 day moving average. this is the s&p 500. they have a band above it which is two standard deviations above that and one below it which is two standard deviations below. you can look at that chart on any timeframe, and it is very rare for the index to get too far above one band or the other. we had this amazing rally monday 1% and it literally closed at the upper bollinger band. somewhere the trading was going on was right at the upper hollinger band. it signals this is something the outgo traders have in their code, to not get too worried. >> how is it the chart got to look like that? where in an environment
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we are mostly picking up steam in most of the major economies, things are looking up. britain is in an unusual situation. if that were a normal economy raising rates, let's think about it. global growth is picking up, interest rate is low, -- inflation is low, interest rates are going up. what is not to like? t, ands goldilocks to a the earnings growth follows -- julia: how far have we come? is that not the point? we were talking about it earlier. the value, they are not overvalued. the scenario you are pointing -- painting is a very significant backdrop, but tie that with how far we have already come. alternativere is no . your treasuries yielding 2%, as
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ex-dividends are very competitive to that. the market looks fully valued, maybe overvalued, but coding to the other market -- the bottom market it is very good. [speaking simultaneously] [laughter] interesting macro phenomenon. you mentioned the u.k., 32 year low unemployment, but no wage growth. unlike here they are seeing general price inflation. boe decision tomorrow, how does party thread the needle? -- mark carney thread the needle? dan: you can be excited we have got inflation. we have been looking for it in the u.s. and the eurozone. if this were a normal economy, they would have raised rates, but brexit is behind everything happening in the u.k. even the rise in inflation, the bank attributes that to the decline in the pound and when
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did that happen? brexit. so it is clear they are probably not ready to raise rates tomorrow. what they could say is we will consider a scenario down the track where the emergency red cutstion, that that came in in the aftermath of brexit, we can entertain a situation where we could take that back and kind of leave it there. that would tell people it is not like they are doing nothing for two years, but they are not going to get oyster us either. that could be one scenario. come back to the central bank here, the funny thing is some of the rally seems to be driven by the idea that the fed is not going to act this year or not early next year. aren't people going to get nervous if growth is not hot enough for the fed to be more aggressive? michael: the rise in the equity
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market is correlated with the odds of a rate hike. function,t the wirp interest rate probability, we are below 1% chances of a rate hike in december compared to 25, 20 6% at the end of the week. this gets people thinking they will be more prone to a hike. bond yields are up. but at some point the odds get so high they will hike as cause the stock to go down. scarlet: i wanted -- julia: i wanted to talk to you about canada but we don't have time. it is only wednesday. michael: read about it in the world news today. dan, thankael and you for your wisdom. why special counsel robert mueller's investigation has a red-hot vent on social media. more on that next. this is bloomberg. ♪
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mark: let's get to first word news. a shooter opened fire at a high school in a tiny town in washington state, killing one student and injuring three others. it happened at freeman high school south of spokane. the shooter has been taken into custody. no information on a motive has been released. israeln netanyahu said supports the kurdish push for independence. is for the referendum scheduled october 25. he a added -- he said they consider the kurdish parker -- worker party a terrorist organization but recognizes legitimate efforts by the kurds to get their own state.
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turkey and iraq are staunchly opposed to the referendum. vermont senator bernie sanders has introduced the medicare for all act of 2017. he tells the washington post it 15 the backing of at least democrats. it comes as republican senator's roll out another effort to repeal and replace the affordable care law. bill lacksngle-payer specifics on funding and cost. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. more on breaking news that president trump has blocked a chinese backed investor from buying lattice semiconductor. here is a trade commission reporter. he joins us from washington. what exactly happened? lattice was lobbying the administration to get approval
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for this deal. they did not succeed. rejected bydeal was a panel of national security experts. they recommended to president trump that this be blocked. the companies were hoping for the promise to save jobs, they could get this deal through and appeal to trump's sort of reputation as a dealmaker, but we learned it did not happen. julia: if we look at what this company does, it is a chipmaker going into commercial applications, my first question would be, what it have made it different if it were china trying to invest? is it personal or honest protection of a critically important technology in the united states? david: the u.s. government is about chinese
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investment in american technology, particularly when it because semi conductors america is the leading manufacturer of semi conductor technology. citedama administration china as a national security threat. this deal continues a string of chinese acquisitions in american technology that have run into trouble once they got to this national security panel. julie: there are a couple more now pending, you have money grant acquisition by ant financial, ciber bridge capital once the anthony scaramucci firm selling itself to hna. this seems to signal it will not get approval. david: we know the money gram deal has run into a number of delays with ccs. panelld indicate that the has some concerns are that would
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basically awning large network, china would have access to information about americans using the money gram service. that might be a concern with that deal. the sky bridge deal is being renewed. that is in the early stages. it is unclear what if any problems that one might have area julia: great to get your insights. let's move on and talk about another topical story as well, social media is at the center of the robert mueller investigation of the 2016. they are looking at how russia could be spreading fake and damaging information and seeking additional evidence from companies like facebook and twitter about what happened on the networks. a national security
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reporter. explain what is going on and are facebook complying? reporter: we know the intelligence community and the federal investigators are looking closely at this one angle of the investigation, which is how did russia manipulate social media last year? what are they doing now? they want to get more information companies like facebook and twitter about what .hey saw when and on capitol hill, there is a sense of more information the companies could be providing. facebook has said he is cooperating -- it is cooperating. there may be more information that investigators need to see. what is the mueller investigation about? i thought it was about trump-russia collusion, now they are looking at trolls on facebook? what does that say about the direction?
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bill: there is a lot of tentacles to this probe, and part of that is because the mandate given to robert mueller after james comey was fired was brought. mueller is allowed to look at issues related to russia's role in the 2016 campaign. between russia and former current trump trades. that is a look at financial issues like jared kushner and russian property developers. it lets them look at all aspects of social media campaigns. there is a lot of different angles for this, but what a reporter found today was one real critical area for mueller right now is the russia role in social media. is there a defense in here somewhere for donald trump they can prove actually the
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russians were interfering -- facebook has alluded to this already and people that have facebook are getting their views from social media, actually being influenced? it never needed to see collusion between the administration and the russians because it was going on on social media. bill: one of the questions investigators will look at, which populations, weston a graphic groups are being targeted in some of these ads and fake news post. how did russia get information on which groups to target? was that something they came to their own conclusion on independently, was that fed to them? ? so, by who with that person linked to the trump campaign? julia: fascinating insights. thank you. this is bloomberg. ♪
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julie: new record highs this week, even despite the concerns. abigail doolittle is standing by with more. >> we have frank appel larry, executive director at this company with more than 20 years of wall street experience. thank you for taking the time. we have more record highs, let's check them for all the record averages. -- are investors getting more bullish? you can talk about this chart you have. >> it is always difficult to try to call the market. they go up every day, so a way to go around that is look at
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long-term. this is the s&p 500, plotted on a 19 month channel. it is pretty consistent as we can see. we see the five different times of consolidation along the way. and from a weekly standpoint, nothing seems to troublesome. as market professionals we see gyrations every day. the loss and momentum is a cause for the market to roll over. we get more. there is a lot of negative rhetoric geopolitical or macro. it has not worked out. even more so the biggest rallies we have seen within this channel have come when things have looked the worst and then rebounded. what this tells us is we have this perception, even when it seems overly bearish. abigail: we are in the middle of that channel, beautiful uptrend, buyers are in control, but if it were to break to the bottom, that would say sellers are
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taking control. is that anything to concern you? equities, ittside is always on credit. moveas confirmed this basically the entire way. there is appetite for risky assets. look at the last number of big drawn out equities in the last few years, it has been led by credit going lower. if we see the emergence soon, the long-term could be in jeopardy. abigail: something else that stands out to me is the rally for the s&p 500 may be driven by the dollar. we have the dollar down more than 10% this year. here is a chart suggesting maybe we will see rally for the dollar. can you talk to us about why that may be? frank: 2017 has been a year of trends, mostly up. the u.s. dollar is the academy
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of a downtrend for 2017 -- you of amy -- epitome downtrend for 2017. this could be the longest losing streak since 2003, beyond this chart. from an investor perspective there is no way to invest, but we look at the long-term as well. two things popped out, which has got me more constructive on possible term, which is the u.s. dollar is getting close to a clear support area with 92-ish. going back further, to 90, 91 was very. resistance and inflection a number of times, but as you know, resistance becomes support. important isre what commercial hedgers are doing. that is what the blueline indicates. we have got more bullish since
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2014 as the dollar has gotten weaker. we see that in the april 2014 when it reached a similar level and coincided with this bottom of the dollar. this right here is 33% move. abigail: in 20 seconds, i have to ask if the dollar turns more bullish, maybe that would be a headwind for stocks? this now is a tailwind, bit of a tailwind terry trade. .rank: it could be a rotation after the election last year it has been strong, so we will see financials do better. abigail: great stuff, thank you for joining us. back to you. julie: thank you. and digging out of a financial nightmare. drew armstrong shares his personal story and it is a
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harrowing one of identity theft. this is bloomberg. ♪
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mark: crumpton. president trump is reaching across the aisle as he tries to get congress to act on tax reform. the white house announced today the president will have dinner at the white house tonight with senate minority leader chuck schumer and house minority leader nancy pelosi. last night, the president met senators joeic manchin, heidi heitkamp, and joe donnelly. russia's effort to influence u.s. voters through facebook and other social media is a "red hot --us" from robert miller's
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robert moeller's investigation. zeroing in on how russia spread fake and damaging information through social media and is seeking additional evidence from companies like facebook and twitter about what happened on their networks. in other news, the un's secretary-general antonio violence ins myanmar against the minority is unacceptable and he is urging government authorities to suspend military action. >> grievances that have been left to fester for decades have escalated beyond myanmar's destabilizing the region. you might say the situation is catastrophic. julie: -- mark: when asked if he agrees that it is ethnic cleansers -- cleansing, he responded 11-third had to fleethird
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the country, can you find a better word? -- two summer games have been granted at once. it will be that occurred -- the third olympics for both cities. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. : let's give you a quick recap of the market action in terms of equities. dow,minor gains for the s&p 500, and is not -- and the nasdaq, but they are and do represent fresh record closes for the indices. the key out performer is the energy sector. oil rushing to a five-week i. -- five-week high. it is a demand story rather than a supply. oil trading above 49 $.3 a barrel. julie: investigators continue
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looking into how a consumer credit reporting agency -- aqua facts -- suffered one of the biggest cyber attacks in history. the catastrophic theft of personal data could cause financial grief for consumers for years to come. knowserg's drew armstrong too well about that. he was a victim of identity theft and it took him three years to clear his name. thank you so much for doing this. --have become numb to it when this happens. 143 million -- you cannot even conceive of that. briefly tell us what happened to you. drew: back in 2013, a guy down in florida, who, for speaking to police and fbi down there, was part of a criminal group, basically. he had my social security number, my date of birth, and he created a fake drivers license. using that, he opened up bank
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accounts and four different banks in two days, got a credit card online from bank of america, and basically proceeded to impersonate me for a few months. he sold an rv online that he never delivered. he wired the money back to russia using one of the bank accounts, and it created this three-year odyssey of me trying to clean up all the echos of that mess that involve everything from banks, credit bureaus, the tsa -- a huge amount of wreckage in my life that it takes to unwind what someone didn't just a couple of months. a lot of people don't appreciate that when their identity gets stolen, it is not just someone will open up a credit card and they will have to say no. there is so much that can happen and it is ethical to unwind that. joe: it affected your ability to buy a home. drew: exactly could my wife and i are in the process of buying a house, and when we talked to our mortgage broker, he said we will
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do a deeper check on you than the credit agencies do or than what shows up in your credit report. if there is anything in there, it might be a problem for you. the result is none of my income, none of my assets -- no part of me could be part of that loan application process. i am looking my wife has a good job and we were able to go ahead. if that was not the case, we would continue to rent in brooklyn indefinitely and not be able to dissipate in a fundamental part of the american economy. likewise i cannot get new credit cards. i have a low credit limit. , despite the fact that the real me has never missed a payment on anything in years and years, i had a credit score that was considered very poor. no one would give me credit lines of extension. way towardslong ruining your financial life from a personal finance standpoint. julia: what this seems to suggest to me is you can get access to credit, open up bank accounts, do all these things
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really quickly, but actually trying to resolve the situation, as you said, actually took more than three years, and you are still struggling. as you said, mortgage rates are higher because your wife is doing it alone. drew: it really is remarkable how long it takes to clean these things up. one of the people we talked to -- it is like a game of whack-a-mole. you think you have it, and you are back doing it again had a new bank. when. i walked into open a joint checking and savings account with my wife, i walked into a wells fargo. i had never been a customer at in, andrgo -- i stepped they said i see you have been a customer with us before, mr. armstrong, welcome back. i was thinking here we go again. julia: you have been there before. drew: it happens over and over again. it happens at borders coming in and out of the u.s. because someone has been impersonating my name, trying to send money back to russia, could be fleeing the country.
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it creates a really circumstance -- critics circumstance in your life. julia: the message here is if the redress afterwards is such a struggle, we, kind of, need to protect yourselves better somehow. to get back to your point, when you're talking about 143 million people who have had their data stolen, and who knows what then happens, how do you protect yourself better? is there a way to protect yourself? drew: there are ways. the first and people should do -- this is something i learned from talking to people at the identity theft resource center, and a couple of other folks, you need to see if you are part of the fx breach. you have to put up a fraud alert. you can do that the of the ftc website. a lot of people will have to put on, and it means monitoring your credit reports for a while, making sure nothing funny is going on there.
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that said, in the united states we make it very easy to apply for new financial institutes. the guy who got a credit card in my name, went to a what a water park in miami beach, whole foods -- had all sorts of fun. he went online, put the information of the drivers ran up, his address, and $700,000. i never heard a word about it. julia: how long between your identity being stolen and this starting to show up? drew: he was able to do this within a week or two, and a lot of it faster than that. he went from bank to bank over the course of two, setting up these accounts. julie: did you ever figure out what the point of vulnerability was -- where he got your information? drew: no, i don't. . was part of the anthem inc breach. think of all the times you have entered your social security number somewhere -- whether you
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are signing up for a cell phone credit anyone running a check on you or checking your financial well-being has that information. there are innumerable points where that one number that people refer to as the keys to the kingdom can become vulnerable appearance on can use to impersonate you. joe: you mentioned things people can do to avoid this happening, but let's say one discovers that. after three years of trying to clear this up, what would you recommend are the key things people should do once they realize their identity has been stolen? drew: if you have been a victim of this, it is beyond a single account, or someone stealing your credit card number. it takes an incredible amount of persistence, patience, trying to figure out what the resources are. you need to file a police report, go from department to department at every bank and financial institution. you have to file an affidavit with the ftc. there are places that can help, but you have to be able to do
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the work, unfortunately. joe: cap banks put in any work to smooth the process, especially how prevalent leaks have become? drew: i'm not a specialist, but my account -- the fake account i had was with a good america, and there was also a deposit account. it was one of the most kafkaesque, insane policies i have ever been part of. i got bounced from department to department. i do not know how many fraud departments bank of america has, but i talked to all of the. i've been passed on hold to four or five different people. i'm sorry you were bounced around, here is the number you have to call, and when i dialed it, after three minutes, it hung up on me. the department of justice, copies of my social security card, my passport, drivers license.
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joe: just what you want to be sending out. drew: bank of america's phone records, finally that resolve it. julia: are you a worse case scenario? do you think you are the worst case an area love what can happen as a result of identity theft? drew: i think i am a worse case scenario, but i do not know if i am the worst case. one of the things that i learned talking to experts is what happened to me probably will not end here. this happens every time you intersect with a new way your identity can be used to make money. it is possible these people committed medicare fraud by pretending i was on disability and i will not find out until i am 65, hopefully, signing up for medicare myself. taxe they filed alternate returns in my name attempted to it -- collect refunds. with aime you interact
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way your social security number can be used is a way for -- is an opportunity for someone else to take advantage of that. i was going to say, this is a big argument for two-factor authentication, not using your social security number as a way of identifying. we like convenience, but it comes at a state -- steep price. of all talked to the ceo clear id. they sell monitoring services to copies. it is part of the benefit for some health plans. companies that make two-factor identification a core part of their security process. if you want to open up a bank account, they will call your cell phone. you have to know something, and have something -- a point of contact or a landline. it can circumvent a lot of things, at least put locks on the doors. julia: the kind of pressure that
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it puts you wonder, your job, your relationship -- kind of brave. we have to wrap it up. drew: it is a big pain. i hope nobody else goes through it. julia: drew armstrong. coming up, how many wall street jobs are at risk from automation? says 30% oft banking jobs could be gone in five years time. we want to tell you about --cial coverage unprecedented, exclusive access to the alibaba group including interviews with founder jack mock, and the ceo. starting thursday, we will roll out those interviews. don't miss the special, alibaba, the global disruptor." >> free is not a viable model, but patience is.
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everyone has a chance to go digital. ♪
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julie: it is time for thejulie: bloomberg business flash -- the world's largest reinsurer could get hit by hurricanes harvey and irma. the firm is facing pressure from wall street competition. several have said it is too soon to address damages from those storms. shut offsays it will ads that do not comply with new guidelines. the social media giant is required in an authentic suggestion. facebook will also be involved in deciding what content is
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applicable for advertisers. julia: we continue our coverage from the bloomberg tax sooner than you think conference on roosevelt island in new york city. is own david gura interviewing jeh johnson, former u.s. secretary of homeland security. secretary johnson: the company reports it to the fbi and the department of homeland security. in that situation, the government wants the company to come to us as soon as possible because the government, national security, law enforcement, homeland security is in the best position to connect the dots globally, and has the broader perspective about what is going on. there have been instances, obviously, where companies do not report these things as quickly as they should, and i know from my own personal experience, the sooner the department of homeland security and the fbi is able to get in
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there to help the company with the forensics that identify the bad actors and root them out, the better. david: the company's chairman and ceo characterizes it as a disappointing event. i think that is putting it charitably or mildly. i would imagine a company's executives would be's petrified. is it something that is voluntary -- that the company have to be to tell the government, consumers about this? does something he to be done to make this more mandatory to share with something like this takes place? sec. johnson: for public companies there are disclosure requirements to the public, but it is, pretty much, voluntary, and on my watch we established at dhs something called automated information sharing capability, where we have the ability to share information near real-time with accounting for privacy, and we are encouraging companies to do more of that. ,t is still a work in progress very much so. we want copies -- notice i'm
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still talking -- we want to see companies report things to the government as quickly as possible and share information, because no matter how sophisticated you are in the financial sector and utility sector, everyone benefits from information sharing. david: everyone benefits from information sharing. there was a time for a long time were company's were reluctant to share it amongst themselves. sec. johnson: correct. david: what can be done in the committee of companies? sec. johnson: we have the growth of information sharing organizations, and the government will, hopefully, treat as confidential, information that a company self-reports -- confidential information that a company self-reports. there are applications to reporting a breach, which i know in homeland security we try to take full account of. david: cybersecurity in the context of the election -- you
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are sounding the clarion throughout the campaign that you were worried about the role russia could be playing in the campaign and the election, and the issue was a states rights issue. voting is still very much in the purview of the states. pushed backy against you when you suggested they be more aware of that. how do we change the system -- how big a fault is that in the electoral system that things are done on a state-by-state basis? sec. johnson: so, what happened last year was when we were seeing this growing threat directed at state election systems where there was this scanning and probing of voter registration databases, i went to the state. i had a conference call on august 15, 2016, with every state election official, and we talked about two things. one, the possibility i would use my authority as secretary to designate election infrastructure as critical infrastructure for purposes of cybersecurity.
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that, i got a lot of resistance it because they misperceived was a federal takeover of the election system. so i put that on the back burner, and i made the designation, but after the election, because i did not want it to be an election issue. in the meantime, however, i also encouraged them to come to us for cybersecurity -- assistant, and for the most part they did. read states, blue states -- we got 33 states income and we help them with vulnerability assessments. we got 36 cities and counties in before the election. that is a good news story there, but there is a lot more work to be done. we raised the visibility of this issue in light of russian hacking, but my concern is that we have talked about this issue a lot. "the washington post," "new york , but myis all over this worry is our election infrastructure might he has vulnerable now as it was 10
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months ago when jim klapper and i issued the statement. david: what is to happen in the context of the investigations, and there are many having concurrently -- robert mueller looking into interference -- what would be the result you would like to see where there would be actionable change where comes to preventative measures that would keep foreign actors from interfering in u.s. elections? sec. johnson: i believe we need to do a lot more to ensure that voter registration lists are entirely off-line and that as little as possible, the election reporting process is entirely -- possible the election reporting process is entirely off-line, and we have a set of best practices states will follow. people here know this from looking at the different types
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of ways to vote. there is a wide variety of ways to vote in this country, not just state-by-state, but county by county. there ought to be a basic standard of best practices because voting is essential. it is the core of our democracy. it is as important as just about anything else we do. about let me ask corporate introspective when it comes to sever security. facebook announced at least $100,000 had been spent by russian troll farms to put fake news out there -- to interfere in an unenhanced -- underhanded way with the u.s. election. today bloomberg reported rub her his team will be looking at this issue in specific, -- bob mueller and his team will be looking this issue in specific. i want to be a reaction to what we saw from facebook last week and to the issue more broadly here. one analyst in the piece that was written on the bloomberg today said this is the soft underbelly of foreign interference -- there is very little we can do when this happens.
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sec. johnson: this is, kind of, a symptom of where we are with the increasing interconnectedness of our society, with the availability of the internet to virtually everybody, with fewer and fewer gatekeepers to our news. you know, you are a lot younger than i am, david, but i grew up in a world where it didn't happen until walter contract told me -- walter can't write told me it happened when i on weeknights at 7:00 p.m. there are no gatekeepers like that for our news. people get news all over the place. my kids don't have a tv, and when i ask young people -- i do this all the time -- how do you get your news? facebook, google, my friends -- there are all sorts of different ways to get news, and therefore we live in an environment where by fakebeing informed
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news, or alternative news -- whatever phrase you want to use. issue,, on the russia nothing would surprise me anymore. and last year we were focused on hardening the cybersecurity around our election theastructure and informing american voters and the american public about what we saw the russians doing to try to influence the election process, but these latest revelations, and i am not in a position to know with accuracy what i am reading in the press, but these latest revelations don't surprise me. and it will be difficult to guard against this type of thing again happening. david: you were the fourth secretary of homeland security -- i interviewed your successor a few weeks after he was appointed to the job. the department does not have a permanent secretary. i was struck in talking to him
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about the wake of the job -- all the weight on the shoulders of the secretary that has the thertment, and also how big department is talk about cybersecurity -- the growing threat of cybersecurity. tooou feel or did you worry much is under the umbrella of the department of homeland security at this point? sec. johnson: first of all, my frame of reference before i got to the department of format security was the department of defense. david: sizable. sec. johnson: the department of defense is larger than dhs by multiples, larger than everything else by multiples. it is probably the most decentralized. you have such a range of different missions from counterterrorism, cybersecurity, border security, aviation security, maritime security, enforcement of our immigration laws, protection of chemical, biological, consumer threats, and response to national ice, secret fema,
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service, coast guard -- you name it. all of that, however, makes a tremendous amount of sense to have under the purview of one cabinet-level secretary with the responsibility for homeland security. all those missions before the creation of dhs were scattered throughout the federal government. in havingis virtue one cabinet-level person with the responsibility for keeping an eye on all of it. 2013when i came to dhs in i found that we were still way too stove-piped. one of the things we did was forces fort task border security where you would have one person cornet in the assets of dhs for us -- focused on border security in the southwest and the southeast, and we need to do more of that thing. i am pleased congress codified that into law. we need to do more of that so
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dhs is less stove piped. perhaps have things helping the secretary oversee these missions. it is a big job, without a doubt. david: is it your belief the department is somehow handicapped by not having a permanent secretary in place? we have been through two storms. i will put up a map showing the path of the storms, and in terms of response, and they were -- they were handled -- julia: we believe david gura there talking with former homeland security secretary jeh johnson. johnson. julie: that is all johnson. julie: that is all so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business
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delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. alisa: i'm alisa parenti in alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." one person is dead and three others wounded after a shooting at a high school in washington
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state. a spokesman says the threat is, quote, "eliminated." the school is no longer on lockdown. the aclu and the electronic run tear foundation have filed suit against the trump administration over searches and seizures of multiple -- mobile phones and other electronic devices by border agents who, they say, did not have warrants. they say they were in violation of the first amendment and fourth amendment. the u.s. has banned the use of skier c-suite -- of casper -- kaspersky software on federal networks. kapersky'slieves kremlin connections make its software a security risk. the death toll in the u.s. after hurricane irma is now at more than 20. a 55-year-old florida resident died after


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